'80% Plunge' Poly Hedera Network: "Price Drop Due to Liquidity Attack... Wintermute Is Behind It"

Poly Hedera Network (ZKJ), which experienced a sharp plunge during the previous day's session, has explained the reasons behind the price drop.

On the 17th (KST), according to Cointelegraph, a cryptocurrency-focused media outlet, Poly Hedera Network stated on X (formerly Twitter), "There are five main reasons for the price crash," adding, "These include an organized on-chain liquidity attack, the abnormal farming structure of Binance Alpha, and exchange deposits by Wintermute."

Regarding the liquidity attack, Poly Hedera Network explained, "A malicious liquidity attack occurred in the Poly Hedera Network and 48Club Token (KOGE) pair pool, resulting in sell pressure on the Poly Hedera Network token as well."

Poly Hedera Network further stated that market maker Wintermute is also responsible for the latest drop as it deposited a large amount of Poly Hedera Network tokens into centralized exchanges (CEX). The network emphasized: "During the series of incidents, Wintermute deposited more than 3.39 million Poly Hedera Network tokens into CEX. During this period, the price fell sharply from $1.9279 to $0.2939."

Previously, Poly Hedera Network was a token essential for Alpha Point farming in the Binance Alpha project. Because of this, it was nicknamed the 'Binance version stablecoin.'

However, at around 10:00 p.m. on the 15th, Poly Hedera Network, which was at $1.9, experienced a sudden plunge and dropped to $0.3 in just 30 minutes. The market capitalization shrank by roughly $500 million due to the decline the previous day. However, as of 7:32 a.m. today, Poly Hedera Network has rebounded by 38.63% from the previous day and is trading at $0.4566.